Wednesday, Nov.
4, 2026 CALL PARTICIPANTS Chief Executive Officer - Brian MorrisonPresident - Matt AltyChief Financial Officer - Tim PaulinSenior Vice President and Head of Investor Relations - Nathan Rutledge Revenue -- $194.4 million, driven by organic growth of 89% across all three core missions in the U.S.
and allied nations.Backlog -- $1,013 million, representing a 113% increase since the beginning of the fiscal year due to continued demand for flagship radar and space programs.Air & Missile Defense Revenue -- $83.4 million, reflecting accelerated activity on a major radar program during initial fielding and low-rate production.Space ISR & Resilient Communications Revenue -- $56.8 million, driven by growth in recently awarded international and domestic space payload solutions.Maritime Domain Awareness Revenue -- $54.3 million, attributable to increasing demand for integrated command-and-control software across allied nation programs.Adjusted EBITDA -- $28.5 million, representing a 91% increase year over year and an adjusted EBITDA margin of 14.7%.Adjusted EPS -- $0.15, supported by stronger results of operations and lower interest expense compared to the prior year.Free Cash Flow -- $79.5 million, reversing a $3.8 million outflow in the prior year period due to favorable customer payment timing and increased earnings.Book-to-Bill Ratio -- 1.5, indicating that new orders significantly exceeded revenue during the quarter.2026 Revenue Guidance -- $623 million to $630 million, representing approximately 61% growth at the midpoint.2026 Adjusted EBITDA Guidance -- $95.5 million to $97 million, reflecting higher volumes and improved operating efficiency.Net Leverage Ratio -- 1.2x, down from 4.2x at the start of the fiscal year following debt repayment using IPO proceeds.Total Debt -- $197.9 million, following the repayment of $60 million in revolving credit using IPO proceeds.Cash Balance -- $88.4 million, up from $19.1 million at the end of fiscal 2025.International Backlog Share -- Nearly 25%, a significant increase from the historical 15% revenue share, reflecting growing demand for sovereign space and defense capabilities.2027 Revenue Growth Outlook -- 30% or more, reflecting management's confidence in the scalability of cornerstone intellectual property and program momentum.Product Intellectual Property -- 85% of product revenue, derived from design intellectual property owned by the company.Capital Expenditures -- $4.6 million, representing approximately 2.4% of quarterly revenue as part of the company's low capital intensity model.Net Loss -- $3.0 million, reflecting nonrecurring charges including $5 million in stock-based compensation and $7.4 million in debt extinguishment costs.LTAMDS Program -- Supporting a $1.7 billion prime contract with production orders recently extended through 2028.Net Debt -- $109.5 million, calculated as total debt minus cash, as the company continues to deleverage through growth and cash generation.Accounts Receivable -- $81.0 million, remaining stable despite a significant increase in quarterly revenue.
Need a quote from a Motley Fool analyst? Email [email protected] Morrison stated, "With more design and initial deployment work than we had initially anticipated, we now expect adjusted EBITDA margin expansion to occur over a somewhat longer period than initially anticipated," noting that while volume is overdriving revenue today, the mix of early-stage work affects near-term margin rates.Paulin noted that while the company expects strong cash generation, "working capital requirements may lead to some quarter-over-quarter variability" in net leverage and cash flow.
Lyntris Inc.
(LYNX +28.66%) reported third quarter results characterized by significant revenue growth and a more than twofold increase in total backlog since the start of the fiscal year.
Management reported that expansion is occurring across all mission domains, particularly within the Air & Missile Defense and Space ISR & Resilient Communications segments, which both saw triple-digit revenue growth.
The company stated that its merchant supplier model allows it to support multiple prime contractors while maintaining high ownership of design intellectual property, which accounts for 85% of product revenue.
Following its August IPO, the company has reduced its net leverage ratio to 1.2x and established a new $300 million credit facility to support future working capital needs and strategic initiatives.
Alty noted that the company's vertically integrated capability allows it to work with customers during early mission requirement phases to "develop and deploy solutions far faster than kind of other suppliers in the industry."Morrison indicated that national security priorities such as air and missile defense are "meaningful and long-lasting" problems that maintain bipartisan support regardless of changes in the political landscape.Management reported that international customers now represent nearly one-fourth of the total backlog, reflecting a shift among allied nations toward developing sovereign resilient communications.The company has been selected as the prime payload integrator for the U.S.
Space Force's Protected Tactical Satellite Communications Global Program, expanding its role from antenna solutions to full satellite payloads.Paulin stated that the company expects "continued strong cash generation" as it executes on its $1 billion backlog, with payment structures aligned to reduce the working capital required for growth.
INDUSTRY GLOSSARY Sense-to-Act: An integrated connectivity solution that combines sensing, data fusion, and command-and-control to enable rapid military response to threats.LTAMDS: Lower Tier Air and Missile Defense Sensor, a next-generation radar program for the U.S.
Army.SPY-6: A family of naval radars used for integrated air and missile defense.PTS-G: Protected Tactical Satellite Communications Global, a U.S.
Space Force program for resilient satellite communications.ISR: Intelligence, Surveillance, and Reconnaissance.C2: Command and Control systems used to integrate data for military decision-making.Merchant Supplier Model: A business strategy of providing technology and components to multiple competing prime contractors rather than competing for the primary contract.Book-to-Bill: The ratio of orders received to revenue recognized; a ratio above 1.0 indicates increasing demand.NRE: Non-recurring engineering, referring to the one-time cost to research, design, and test a new product or system.LEO/GEO/MEO: Low Earth Orbit, Geostationary Orbit, and Medium Earth Orbit classifications for satellites.
Full Conference Call Transcript Operator: [Operator Instructions] Good afternoon, and welcome to the Lyntris Third Quarter 2026 Earnings Conference Call.
[Operator Instructions] Please note that today's conference is being recorded.
I will now turn the call over to Nathan Rutledge, Senior Vice Senior Vice President and Head of Investor Relations.
Nathan, please go ahead.
Nathan Rutledge: Good afternoon, and welcome to Lyntris Third Quarter Fiscal Year 2026 Earnings Call.
Please turn to Slide 2.
Before we begin, please note that certain information presented on this call contains forward-looking statements.
Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, and technological factors outside of our control.
These factors may cause our business strategy or actual results to differ materially from forward-looking statements.
For further information on these risks, please review the risk factors discussed in our registration statement on Form S-1 filed with the SEC as well as the Form 8-K filed today, the associated earnings release and the safe harbor statement contained therein.
All forward-looking statements should be considered in conjunction with those in our earnings release.
The company undertakes no obligation to revise any forward-looking statements in today's remarks or to update them to reflect events or circumstances occurring after this call.
We will also discuss certain non-GAAP financial measures.
Definitions and reconciliations to the most directly comparable GAAP measures are included in our earnings materials.
We have also posted a slide presentation at investors.lyntris.com in the News and Events section.
The information discussed on this call is time-sensitive and is accurate only as of today, November 4, 2026.
Joining me today are Brian Morrison, our Chief Executive Officer; Matt Alty, our President; and Tim Paulin, our Chief Financial Officer.
With that, I'll turn the call over to you, Brian.
Brian Morrison: Thank you, Nathan, and welcome, everyone.
I'm excited to share Lyntris' third quarter results.
Our quarter was driven by strong performance, growing customer demand, and an expanding role on programs that matter to the future of defense and space.
Let's look at Slide 4.
I'll start with our third quarter highlights.
Tim will review our financial results, and then Matt will discuss the capabilities and programs driving our growth.
I'll then return for our outlook and priorities before we take your questions.
In August, Lyntris made its debut on the New York Stock Exchange.
That IPO strengthened our balance sheet and increased our capacity to invest in the business and support future growth.
Our focus now is to build on the strong business momentum we experienced leading up to the IPO and which we have continued to see since the listing.
We'll continue to execute as these programs advance, translating today's opportunities into sustained long-term growth.
Our purpose is straightforward.
We help customers connect the modern battle space from sense to act.
Our engineering talent and proprietary technology help detect threats, share and interpret information, and enable a response.
We bring these capabilities together to meet demanding mission requirements, working with government agencies and military customers as well as both established and emerging primes.
Our track record of delivering for these customers positions us to grow as their programs advance and will take on a larger role as their needs evolve.
In the third quarter, we delivered total revenue of $194 million, a year-over-year increase of 90% or 89% organically.
Adjusted EBITDA grew 91% to $28.5 million, representing a margin of 14.7%.
Adjusted net income was $17 million or $0.15 per share, and free cash flow for the quarter was $79 million.
These results exceeded our expectations, demonstrating strong momentum in our business as we continue executing against our strategic priorities.
Our third quarter performance reflects strong customer demand and the increasing relevance of our technology to evolving mission requirements.
Customers need to detect threats at greater distances, operate across more frequency bands, and respond with greater speed and accuracy.
Those requirements closely suit the capabilities we brought together at Lyntris, from sensing and communications to software that connects information to command and control.
We see broad-based growth across a number of programs, particularly in Air & Missile Defense and Space ISR & Resilient Comms, supported by the modernization of U.S.
and allied radar systems and the growing need for resilient space-based communications.
International customers are also investing in sovereign defense and space capabilities, creating additional opportunities for our technology.
Much of this increased activity supports well-funded high-priority programs with room to grow as programs move through the development life cycle.
This work includes upfront engineering and initial production that generate revenue and adjusted EBITDA today but also establish the technology and manufacturing foundation for follow-on work.
The first system requires more engineering effort, subsequent systems build on that work, creating the opportunity for higher margins as production expands.
These program positions are an essential part of our long-term growth strategy.
Engaging with customers early on allows us to embed our technology in their solutions and expand our role as programs mature.
Our merchant supplier model also allows us to apply that technology across multiple customers and programs.
We welcome the additional revenue and adjusted EBITDA dollars from this work while continuing to focus on driving execution and profitability for the long term across the portfolio.
That customer demand is also reflected in our backlog.
We ended the quarter with a total backlog of just over $1 billion, up about $100 million sequentially and 113% compared with $476 million at the end of fiscal 2025.
Our book-to-bill in the quarter was 1.5.
Even with the strong revenue growth we delivered this quarter, orders continue to significantly exceed revenue, strengthening our visibility into future activity and supporting our confidence in the continued growth of this business.
Orders during the quarter included both initial awards and follow-on commitments that move programs from development into low rate production.
International demand continues to support our growth.
While international customers have historically represented about 15% of revenue, their share of our backlog has grown substantially in the fiscal year, accounting now for nearly 1/4 of our total backlog.
These trends strengthen visibility into future activity and support our confidence in sustained growth.
Slide 5 shows how that growth is taking shape across our core missions.
Air & Missile Defense revenue increased 154% to $83 million, reflecting accelerated activity on a major radar program where we are supporting initial fielding and low-rate initial production, along with contributions from programs across the production life cycle.
Across this mission area, our positions span initial fielding, low rate production and programs preparing for higher production volumes.
The absolutely essential modernization of U.S.
and allied radar systems creates opportunities to build on these positions as customers demand greater range, accuracy, and sensitivity in response to a rapidly evolving threat environment.
In Maritime Domain Awareness, revenue grew 29% to $54 million.
Our work there spans naval radar, command and control, defensive cyber and integrated maritime sensor networks, including unmanned systems.
These capabilities help customers understand activity across their waters, protect mission networks, and coordinate a response.
In Space ISR & Resilient Comms, revenue grew 108% to $57 million as we met rapidly growing sensing and communications demand.
Here, we're expanding from integrated antenna solutions into full-up satellite payload solutions.
Our recently announced role as a prime payload integrator on PTS-G illustrates that broader capability.
We also see a substantial international opportunity in sovereign ground antenna and satellite payloads as allied nations seek resilient space-based communications capabilities tailored to their own requirements.
Our space heritage across geostationary and medium earth orbits, together with our expertise in multi-frequency antennas gives us a strong foundation to address this emerging demand.
As requirements become more complex and deployment time lines compress, we see opportunities to bring these capabilities together into broader payload solutions and apply our technology across additional customer programs.
Across all of our core mission areas, we are seeing opportunities to advance positions we've spent years establishing.
Our engineering expertise and track record of delivery give us the foundation to support customers as their programs advance and requirements expand.
This quarter demonstrated what that can mean for Lyntris.
Customers asked us to do more, and we met the moment, driving growth in revenue and in our bottom line.
Tim will now walk through the financial results in some greater detail.
Tim Paulin: Thank you, Brian.
We're now on Slide 6.
Our third quarter results reflect both growth in customer demand and faster pace of activity on existing programs.
I'll walk through the financial detail on Slide 6, and then we'll cover free cash flow and our balance sheet.
As Brian mentioned, revenue was $194 million, up 90% year-over-year or 89% organically, reflecting increased activity in Air & Missile Defense, integrated satellite payload programs and allied maritime programs.
Adjusted EBITDA increased 91% to $28.5 million with a margin of 14.7%.
Higher revenue and cost actions offset the program mix, including more upfront engineering and initial production on programs where we are embedding our proprietary technology as well as growing investment in public company capabilities.
As these programs move into higher rate production, we expect to benefit from the engineering work already completed and greater manufacturing scale.
On a GAAP basis, we reported a net loss of $5 million or $0.04 per share compared to a net loss of $3.5 million or $0.03 per share in the prior year period.
Adjusted net income was $17 million or $0.15 per share versus $1.7 million and $0.02 per share in the prior period.
Our adjusted net income measure excludes acquisitions and integration-related costs, stock-based compensation, amortization of acquired intangibles and certain other items together with related tax effects.
The year-over-year improvement in adjusted net income was primarily driven by stronger results of operations, lower interest expense and adjustments for onetime items such as share-based compensation and loss on debt extinguishment.
Turning to our results for the 9 months ended September 30, 2026.
Revenue increased 55% to $435 million, reflecting stronger growth on new and existing programs.
On a GAAP basis, we reported a net loss of $18 million or $0.17 per share compared to a net loss of $13.2 million or $0.14 per share in the prior year period.
Adjusted net income was $30.6 million or $0.28 per share versus $2.4 million and $0.03 per share in the prior period.
The increase in our net loss is mainly attributable to nonrecurring stock-based compensation expenses and a loss on refinancing debt, partially offset by stronger operational performance and lower interest expense.
Adjusted EBITDA grew 65% to $66.3 million, supported by top line growth and effective cost controls, yielding an adjusted EBITDA margin of 15.2%, a year-over-year increase of 90 basis points.
Reconciliations of adjusted EBITDA, adjusted net income, adjusted diluted earnings per share and free cash flow to the corresponding GAAP measures are included in our earnings materials.
Turning now to free cash flow.
Operating activities generated approximately $84 million of cash in the quarter, while capital expenditures were $5 million, resulting in a free cash flow of $79 million.
Free cash flow excludes IPO proceeds.
Through the first 9 months, operating cash flow was $119 million, capital expenditures were $11 million, core free cash flow of $108 million.
Lyntris delivered strong free cash flow this quarter, supported by earnings and favorable customer payments.
Across our portfolio, we received payments at different points in program execution, including upfront funding, progress payments and payments following delivery.
We work with customers to align payment terms with program requirements and reduce the working capital required for growth.
Our mix of payment structures, disciplined working capital management, and low capital intensity support an attractive cash flow profile.
Cash flow will vary from quarter-to-quarter as receipts and program spending move through the business.
We expect continued strong cash generation as we execute our backlog, further strengthening our balance sheet and financial flexibility.
We also took important steps to strengthen our balance sheet during the quarter.
In July, we entered into a new $200 million term loan plus $100 million revolving credit facility, which came with materially lower interest rates than our prior facilities.
Additionally, we used about $60 million of IPO proceeds to repay debt and ended the quarter with no balance on our revolver.
We ended the quarter with $88 million in cash and $198 million in debt, bringing net leverage to 1.2x, down significantly from 4.2x at the beginning of the fiscal year.
Looking ahead, we expect net leverage to continue declining over time, although working capital requirements may lead to some quarter-over-quarter variability.
Our strengthened balance sheet provides greater financial flexibility to support customer commitments, fund working capital needs, and invest in future growth.
With that, I'll turn it over to Matt to discuss our capabilities and progress we're making across key programs.
Matt? Matthew Alty: Thank you, Tim.
Let's now turn to Slide 7.
I'd like to start by taking a step back and examining the mission environment because it explains why customers choose Lyntris.
Warfare has changed in three fundamental ways.
Firstly, our adversaries are adapting faster and the threats we encounter are more complex and numerous across every domain.
We operate in a spectrum that is now congested, contested and weaponized.
And detecting, tracking and responding to these threats require sensors with more range, sensitivity, and accuracy.
Second, the data.
Following the proliferation of sensor networks, data often remains siloed by service and platform, which is a problem when decision time lines are compressed.
Commanders need a clear integrated view of the battle space that enables faster, more informed decisions.
Third, connectivity.
Adversaries of industrialized electronic warfare and legacy architectures, satellites and waveforms can become single points of failure.
The United States and its allies need secure, resilient links.
And many allied nations are building sovereign capabilities to protect their own borders.
Together, these dynamics are reshaping mission requirements and creating significant opportunities for Lyntris.
Turning to Slide 8.
Lyntris' capabilities cover the full path from sensing to action.
Our sensors are used to detect threats and communicate data in highly contested environments.
Our sensor architecture shapes how those sensors behave and prepares their output to be fused with other sources.
Our data and mission software then turns that information into an integrated picture that supports faster, more informed decisions.
Our solutions are modular by design.
We build proven hardware and software building blocks that can be adapted for different platforms and missions so a customer can start with a single component and scale to a fully integrated subsystem.
That modularity is why our technology appears in every domain from integrated satellite payloads and into subsystems to radar on next-generation fighters, multiband ground terminals and maritime systems.
The platforms differ, but the same core technology carries across each one.
Together, these capabilities support the 3 missions that Brian described earlier, Maritime Domain Awareness, Air & Missile Defense, and Space ISR & Resilient Communications.
Slide 9 shows how we bring those capabilities to market.
Our merchant vendor supplier model gives us multiple paths to participate in customer programs.
We work with both established defense primes and newer entrants and our technologies often support more than one team competing for the same opportunity.
We also work directly with end users, including the U.S.
services and allied governments.
Engaging early helps us understand their requirements and build our proprietary technology into the solutions that can advance with the program.
Proprietary technology is central to that approach.
Approximately 85% of our product revenue comes from products built on design IP that we own.
And the vast majority of our business comes from sole, single or directed source positions.
As of the end of last year, we supported more than 200 programs.
Those IP-derived positions provide continuity as programs advance and they are the foundation for the program momentum on the next slide.
Let's turn to Slide 10, where 3 programs show how our capabilities address the needs we described earlier and how our role can grow over time.
We'll begin with Air & Missile Defense.
LTAMDS is a program that we've supported from concept, and the program has recently transitioned into production and deployment phase under a U.S.
Army contract valued at over $1.7 billion to the prime.
In September, we announced production orders under a long-term purchase agreement with Raytheon, supporting demand through 2028.
LTAMDS has been developed to provide the Army with 360-degree integrated Air & Missile Defense capabilities.
The precision thermal management assemblies that we build at Lyntris help the radar's high-power electronics maintain stable temperatures and directly support the radar sensitivity, accuracy and range.
Detecting and tracking the threat, however, is only the first step.
In Maritime Domain Awareness, our customers need to interpret data faster so they can make informed decisions, develop a plan and coordinate a response.
Our command-and-control solutions bring information from multiple sensors into a shared operational picture, enabling faster, more informed....
